Osaka’s Ferrous Scrap Price Reaches 40,000 yen Topping Tokyo

Ferrous scrap price in Osaka became higher than the price in Tokyo for the first time in 2 months. The market price is 39,000-40,000 yen per tonne for H2 grade at the electric furnace steel makers’ purchase price in Osaka and some electric furnaces pay more while the price is 38,000-39,000 yen in Tokyo. Many electric furnaces increased the price late last week.

The electric furnaces around Osaka increased the scrap purchase price by around 1,000 yen per tonne on Friday. The dealers sell the scrap not only to electric furnaces around Osaka but also to steel makers in other areas.

Ferrous scrap price is 14,000-17,000 yen per tonne higher than the level in the beginning of 2010. The electric furnaces try to increase the product price. However, the electric furnaces experience the hard tome to hike due to the low demand, according to one trade firm source.